Reckitt sees good 2010 growth

The group, which employs about 800 at its healthcare plant in Hull, set new modest sales and profit forecasts stripping out its Suboxone-led pharmaceuticals unit, but chief executive Bart Becht was still upbeat today saying he expected growth this year after a "very good" year 2009.

"Based on the current market outlook, we are confident of achieving continued good growth in 2010," he said in a statement.

Reckitt lost its exclusive licence in early October for its Suboxone heroin substitute drug, and it expects generic rivals will emerge to dilute its growth. It has warned 80 per cent of Suboxone's US profits - which make up 16 per cent of group profits - will be lost following the launch of competition.

The group which makes Finish dishwash products, Cillit Bang cleaners and Nurofen painkillers reported fourth-quarter net profit of 448m compared with a consensus forecast of 447m.

It reported fourth-quarter underlying sales up 10 per cent at constant currency compared to a consensus rise of 6.3 per cent, reflecting a strong end to 2009 already reported by its rivals Unilever and Procter & Gamble.

Due to the uncertain timing of the generic competition to its Suboxone drug in the United States, the group said it was setting targets for the business for 2010 after stripping out its high-growth pharmaceutical unit.

Reckitt set an underlying sales growth target for this year at 5 percent and operating profit growth of 10 percent taken at constant currency.

Its 2009 dividend rose 25 percent to 100 pence a share.